CAF
Currency Adjustment Factor
CAF is a surcharge on freight that protects the carrier against changes in exchange rates.
In plain words
Shipping lines usually set freight in US dollars, but many of their costs are in other currencies. When exchange rates move, their real income changes. The CAF corrects for this. It is often a percentage of the base freight, and the line updates it from time to time.
Not every line or route uses a CAF. When you compare quotes, check whether it is included, how it is calculated, and the currency of the final invoice.
Example from real shipping
A freight quote shows a base rate of USD 1,000 and a CAF of 5%. The CAF adds USD 50, so the freight is USD 1,050 before other charges. A month later, the line changes the CAF to 3% because the exchange rate has moved.
Related terms
- BAFBAF is a surcharge on sea freight that covers changes in the price of ship fuel (called bunker).
- THCTHC is a charge for handling a container at the port terminal, for example lifting it on or off the ship and moving it in the yard.
- Landed costLanded cost is the total cost of getting a product to your door: the price of the goods plus freight, insurance, duties, taxes, and all other fees on the way.
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Request a QuoteThis glossary is general information, not legal or customs advice. Rules, fees, and practice can differ by carrier, port, and country.